What the heck is Target ($TGT) up for? Or SanDisk ($SNDK)?. Akamai Technologies ($AKAM)? Express Scripts ($ESRX)? Limited Brands ($LTD)? Prudential ($PRU)? Starbucks ($SBUX)?
Each one tells a story. I think Akamai and SanDisk are examples of sellers' exhaustion. You can't keep pounding the same stocks over and over. Express Scripts signals a recession. It's what you buy. Prudential may be related to the strength of MetLife ($MET), which is something that Doug Kass has pointed out. Target and Limited Brands? These are signs of health. They are signs that there is a pulse. Starbucks says that earnings matter, and so does its accelerated revenue growth. The company posted terrific numbers -- 30% growth in China, for heaven's sake!
Chesapeake Energy ($CHK)? More on this one later, but if you take them at their word, something I have very much learned to do, CHK's management is saying that they may just have had the biggest find of oily liquids in 40 years: the Utica shale. And it is in Ohio! That's right, Speaker John Boehner's homeland.
Aubrey McClendon, Chesapeake's CEO, is talking about how his million-plus acres in Utica could be worth $15 billion-$20 billion. He says it is economically equal to Eagle Ford, which IS the largest find in 40 years. Given that CHK's market capitalization stands at $22 billion, that's a pretty important find, even after you discount Chesapeake's big debt load. No wonder it is moving higher. That kind of move can truly move the needle -- even with Washington's chaos front and center.
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